Microsoft’s last few years haven’t been its best. But its business is so huge, and its user base so large, that it has been able to keep turning profits despite Ballmer’s biggest blunders. The loss, according to the AP, was caused by an accounting adjustment. What does that mean? In 2007, Microsoft bought advertising business aQuantive. Turns out it was a bad deal, and in its fourth quarter balance sheets, Microsoft decreased the value of the company, pushing its numbers into the red for the quarter.
While these types of accounting shifts are common, it’s particularly here because Microsoft is such a powerhouse. Luckily, things have been looking up for the company recently between the forthcoming releases of Windows 8 and the recently announced Microsoft Surface computers. Let’s hope Redmond can turn this temporary frown upside down. [AP via MSNBC]